THE CODI adjusts conversion price upward from 4,640 won to 5,296 won, reducing dilution from 12.53% to 10.98%
THE CODI submitted a correction report increasing the conversion price of its 10th convertible bond issuance from 4,640 won to 5,296 won, while the issuance size remains 30 billion won.
The upward adjustment reduces the number of shares issuable upon conversion from 646,551 to 566,465, lowering the dilution ratio from 12.53% to 10.98%, easing dilution concerns for existing shareholders.
The floor for price adjustment due to market decline was raised from 3,248 won to 3,708 won. All other terms including coupon rate, maturity, and put option remain unchanged.
The proceeds will be used for overseas plant construction, and the counterparty remains K-Sung Growth Equity, a single-member entity.
[AI Summary]THE CODI's upward conversion price adjustment is positive for existing shareholders as it further reduces potential dilution. However, a significant 10.98% dilution risk remains, and governance concerns persist due to the small single-member counterparty. The conversion price is slightly above the current market price, limiting immediate conversion incentives, but dilution risk remains if the stock price rises.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)